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Large cash payments are banned: property, vehicles, shares and luxury goods

Last verified: 2026-10-27 · Status: Stable

Abroad, paying cash for an asset is merely unusual; in Mexico it is prohibited to pay or accept cash, in pesos, foreign currency or precious metals, above set thresholds, even if the cash passes through a bank. In 2026 the limits are MXN 941,412.75 for real estate (8,025 UMA) and MXN 376,565.10 for vehicles, jewelry, art, armoring and shares or partnership interests (3,210 UMA), and monthly leases of property and vehicles above 3,210 UMA. Both sides face a fine of 10,000 to 65,000 UMA or 10 to 100 percent of the deal value, whichever is greater, and notaries must record how payment was made.

USD conversions use MXN 18.6638 per US dollar, the US Federal Reserve H.10 noon buying rate in New York for 23 October 2026 (FRED series DEXMXUS), the latest observation available when this page was verified. Mexican law uses the Banxico FIX rate published in the DOF for foreign currency amounts, which differs slightly. Conversions are for orientation only.

Key facts

Cash payment ban threshold, real estate, 2026 (8,025 UMA)	941412.75 MXNLFPIORPI art. 32, section I; UMA 2026 MXN 117.31, as of 2026-10-27 · in force
Cash payment ban threshold, shares, vehicles, jewelry and art, 2026 (3,210 UMA)	376565.10 MXNLFPIORPI art. 32, sections II, III and VI; UMA 2026 MXN 117.31, as of 2026-10-27 · in force
Minimum fine for taking part in a prohibited cash operation, 2026 (10,000 UMA)	1173100.00 MXNLFPIORPI art. 54, section III, as of 2026-10-27 · in force
Maximum fine as a share of the operation value, if greater than the UMA band	100 %LFPIORPI art. 54, section III, as of 2026-10-27 · in force
Unit of Measure and Update (UMA), daily value from 1 February 2026	117.31 MXNINEGI publication DOF 9 January 2026, as cited by IMSS, as of 2026-10-27 · in force

The rule

1. It is prohibited to settle or pay, or to accept settlement or payment, using coins and bills in pesos or foreign currency, or precious metals, even when the cash is paid through a financial entity, for: creating or transferring real rights over real estate worth 8,025 UMA or more; transfers of vehicles (air, sea or land) and of watches, jewelry, precious metals and stones and art worth 3,210 UMA or more; gaming tickets and prizes, and armoring services, of 3,210 UMA or more; transfers of shares or partnership interests worth 3,210 UMA or more; leases of real estate, vehicles or armoring of 3,210 UMA or more a month; and payments into court for any of those acts. The UMA value on the payment date applies.
Cost to do it: With the 2026 UMA of MXN 117.31: real estate MXN 941,412.75, the other categories MXN 376,565.10.
Example: A buyer offers MXN 400,000 in cash for 10 percent of a Mexican company. Because MXN 400,000 exceeds MXN 376,565.10, the payment is prohibited and must be made by transfer. / Thresholds of about USD 50,441 for real estate and USD 20,176 for shares, vehicles and luxury goods.Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita (LFPIORPI), DOF 17 October 2012 (consolidated text, last reform DOF 16 July 2025); UMA 2026 published by INEGI in the DOF on 9 January 2026, as cited by IMSS, LFPIORPI art. 32, 2025-07-16 official text · verified 2026-10-27 · changed: The DOF 16 July 2025 reform restated art. 32, extending the ban to cash paid through a financial entity, to armoring of real estate and to payments into court.

2. Notaries recording any of those acts must identify how the obligations are paid when the operation is worth 8,025 UMA or more. Below that, if the price was paid before signing, a sworn statement by the parties suffices. The other acts must be documented with certificates, invoices or guarantees that state the form of payment with the payment receipt attached, after identifying the parties and, where applicable, the beneficial owner.
Cost to do it: No separate fee; notarial fees vary by state.
Example: At the deed signing for a MXN 3,000,000 office, the notary records the SPEI transfer references in the deed. / About USD 160,739 of price that must be traceable.Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita (LFPIORPI), DOF 17 October 2012 (consolidated text, last reform DOF 16 July 2025), LFPIORPI art. 33, 2025-07-16 official text · verified 2026-10-27 · changed: The DOF 16 July 2025 reform restated art. 33 and added beneficial owner identification.

3. Taking part in a prohibited operation is fined at 10,000 to 65,000 UMA, or 10 to 100 percent of the value of the operation when it can be quantified, whichever is greater. In 2026 that means at least MXN 1,173,100.00 and up to MXN 7,625,150.00, or more if the deal is large.
Cost to do it: Minimum fine MXN 1,173,100.00 per participant.
Example: For a MXN 2,000,000 cash purchase of a house, the fine is the greater of 10,000 to 65,000 UMA (MXN 1,173,100.00 to MXN 7,625,150.00) or MXN 200,000 to MXN 2,000,000, so at least MXN 1,173,100.00. / At least about USD 62,854, up to about USD 408,553 on smaller deals.Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita (LFPIORPI), DOF 17 October 2012 (consolidated text, last reform DOF 16 July 2025), LFPIORPI arts. 53, section VII, and 54, section III, 2025-07-16 official text · verified 2026-10-27 · changed: The DOF 16 July 2025 reform restated the fine bands in art. 54.

Operation	UMA	MXN	USD
Real estate: creating or transferring real rights	8,025	941,412.75	50,441
Vehicles (air, sea, land)	3,210	376,565.10	20,176
Watches, jewelry, precious metals and stones, art	3,210	376,565.10	20,176
Gaming tickets and prizes	3,210	376,565.10	20,176
Armoring of vehicles or real estate	3,210	376,565.10	20,176
Shares or partnership interests	3,210	376,565.10	20,176
Leases of real estate, vehicles or armoring, per month	3,210	376,565.10	20,176

2026 cash ban thresholds (UMA MXN 117.31). USD at MXN 18.6638. Source: LFPIORPI art. 32.

Worked example

A foreign executive relocating to Mexico City agrees to buy a car for MXN 450,000 and a flat for MXN 4,500,000.
Both exceed the 2026 thresholds (MXN 376,565.10 for vehicles and MXN 941,412.75 for real estate), so neither can be paid in cash, even by depositing cash at the seller's bank.
Paying cash would expose buyer and seller to fines of at least MXN 1,173,100.00 (USD 62,854) each; a transfer from a bank account avoids the issue.

Step by step

1. Check the UMA value on the payment date and compare the price to the thresholds.
2. Pay by bank transfer, card or check from an account in the buyer's name.
3. Give the notary the transfer evidence before signing.
4. For share deals, keep transfer receipts in the share purchase file.

Common traps

Depositing cash at the seller's bank is still a cash payment under art. 32.
Splitting a price into several cash payments does not avoid the ban, because the threshold looks at the value of the act.
Foreign currency cash is caught as well as pesos.
The fine can reach the full value of the deal.

Sources

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